--> Development of Coalbed Methane in the United States, by M. J. McGuire; #90986 (1994).

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Abstract: Development of Coalbed Methane in the United States

Michael J. McGuire

Methane has been produced from coalbeds in the United States since the early 1900s, however the significance of this resource has only been recognized during the past decade. Coalbed methane production has developed as an economic source of pipeline quality gas in several areas within the United States. Production of methane directly from coalbeds developed rapidly after the special tax credit for nonconventional gas resources was passed in 1980. In Section 29 of the 1980 Crude Oil Windfall Profits Tax Act, a tax credit was applicable to wells drilled after December 31, 1979, and before January 1, 1990. The qualification period was extended twice, for one year in the 1988 Technical and Miscellaneous Revenue Act, and for two years in the 1990 Budget Reconciliation Act. Wells drilled by the end of 1992 now receive the tax credit through the end of 2002. Commercial production of coalbed methane has been established in the San Juan, Black Warrior, Powder River, and Piceance basins. Important new drilling and potential commercial production are underway in the Central Appalachian basin, and the Arkoma and Cherokee basins. The natural gas present in coalbeds represents a substantial addition to the United States energy resource base. To maintain their current position and show future growth the coalbed methane industry will need to continue to improve production technology while controlling development costs.

AAPG Search and Discovery Article #90986©1994 AAPG Annual Convention, Denver, Colorado, June 12-15, 1994